TWST

Twist Bioscience Corporation

Next est. report 2026-11-13 · BMO

Biotech '25: RNA-Based/Genetic MedicineBiotech '26: AI Driven Drug DiscoveryGenomics '25: Genomics Tools & AutomationGenomics '25: Synthentic Biology & Biofoundries

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Overview

Twist Bioscience creates synthetic DNA on silicon chips, enabling drug discovery and diagnostics. Its DNA Synthesis and Protein Solutions (48% of revenue) suppo

Twist Bioscience creates synthetic DNA on silicon chips, enabling drug discovery and diagnostics. Its DNA Synthesis and Protein Solutions (48% of revenue) support AI-driven drug development, while NGS Applications (52% of revenue) provide tools for genetic sequencing and disease detection. They serve pharmaceutical, diagnostic, academic, and government clients, with strong growth in AI-enabled discovery.

Search Keywords Brand Product

Twist Oligo Pools
Gene Fragments
Complex Genes offering
Express Genes
Twist viral panel
NGS Target Enrichment Solutions
TrueAmp Library Prep Kit
EM-seq v2 Methylation Detection System
synthetic DNA manufacturing
AI drug discovery
next-generation sequencing
genomics tools
antibody discovery
molecular residual disease testing
synthetic biology platform

Search Keywords Event Phrases

Twist Bioscience earnings
Twist Bioscience Investor Day

Search Keywords Policy Regulatory

FDA AI drug development guidance
EMA AI in pharma regulation

What They Do (Plain English & Analogies): Twist Bioscience is like a high-tech factory for DNA. Instead of building cars or electronics, they 'write' custom DNA sequences onto tiny silicon chips, much like printing circuits on a computer chip. This allows them to create huge amounts of precise, custom DNA very quickly and affordably. Their customers, who are often scientists and drug developers, use this custom DNA for many purposes: to discover new medicines (especially with the help of AI), to create advanced diagnostic tests for diseases like cancer or infectious outbreaks, to improve crops, and for academic research. They essentially provide the foundational biological 'code' and tools that enable breakthroughs in various life science fields.
Very Brief History: Twist Bioscience Corporation was founded in 2013 by Emily Leproust, Bill Banyai, and Bill Peck. The company pioneered a unique silicon-based DNA synthesis platform to industrialize the engineering of biology. Since its inception, Twist has focused on providing high-quality synthetic DNA products, expanding into next-generation sequencing (NGS) tools and antibody libraries. It has demonstrated consistent growth, reporting its 14th consecutive quarter of sequential revenue growth in fiscal Q3 2026.
"Street Stereotype": Twist Bioscience is generally perceived as a leading, high-growth synthetic biology company, a foundational technology provider for the rapidly expanding AI-driven drug discovery and genomics markets. Its proprietary silicon-based DNA synthesis platform is seen as a key competitive advantage, enabling unparalleled speed, scale, and cost efficiency in DNA manufacturing. Investors are focused on the company's consistent revenue growth, expanding gross margins, and its clear path to achieving adjusted EBITDA breakeven.
Subsidiaries On Linked In*: {"subsidiaries":[]}
Customer Sectors & Example Clients: Twist Bioscience serves a diverse range of customer sectors including Therapeutics, Diagnostics, Industrial and Applied, Academic and Government, and Global Supply Partners. For therapeutic discovery, particularly AI-enabled drug discovery, their clients include large pharmaceutical companies, dry lab biotech firms, traditional biotech companies, and major technology companies. Diagnostic customers are a primary driver for their NGS applications group. Academic and government institutions, particularly in the U.S., also represent a significant customer base. While specific current client names were not provided in the transcript, based on their business model and industry, likely clients would include leading biopharmaceutical companies, genomics research institutions, and agricultural biotechnology firms.
New Customers / Segments They'Re Targeting: Twist Bioscience is aggressively targeting and seeing significant growth from customers engaged in AI-enabled drug discovery. This includes large pharma, dry lab biotech, traditional biotech, and major technology companies that are leveraging AI for their initial antibody discovery screens. They are also expanding their offerings to support customers moving into new therapeutic modalities, such as developing full IgGs and bispecific antibodies from initial VHH designs. Additionally, they are focusing on providing a 'one-stop shop' solution by expanding their data characterization capabilities, allowing customers to receive not just sequences and proteins but also comprehensive evaluation data. In the NGS space, they are targeting new opportunities in next-generation assays, tumor-informed molecular residual disease (MRD) tests, and optimizing workflows using proprietary enzymes.
Supply Chain And Sourcing Geographies: Twist Bioscience's core technology relies on a semiconductor-based DNA synthesis platform, utilizing silicon chips. The company operates manufacturing facilities in South San Francisco, California, and a larger 'Factory of the Future' in Wilsonville, Oregon, which is expected to double its manufacturing capacity. The manufacturing process is highly automated and designed to reduce reagent consumption and waste. The company manages a global logistics function, overseeing international shipping, customs clearance, and coordination with freight forwarders, brokers, and carriers across major global trade lanes, indicating a worldwide distribution network. Twist is also working to reduce its dependence on external suppliers by introducing proprietary enzymes in its internal workflows.
Sales Geographies And Expansion Plans: Twist Bioscience currently sells its products across three main geographic regions: the Americas, EMEA (Europe, Middle East, and Africa), and APAC (Asia-Pacific). In fiscal Q3 2026, the Americas accounted for approximately $77.3 million in revenue (30% YoY growth), EMEA for $33.6 million (9% YoY growth), and APAC for $7.5 million (26% YoY growth). While the transcript does not explicitly detail plans to expand sales into new specific geographies, the company's global logistics function and its role in global public health (e.g., identifying Ebola virus in DRC and Uganda, synthesizing hantavirus material for a cruise ship outbreak) imply a broad international reach and a strategy to serve customers worldwide.
How Key Themes May Help/Hurt: The 'Biotech '26: AI Driven Drug Discovery' theme significantly benefits Twist Bioscience. The company's core business of high-throughput DNA synthesis, protein expression, and data characterization is a critical enabler for the iterative 'design, build, test, learn' cycles central to AI-driven drug discovery. The accelerating trend of Generative AI for novel molecule design directly translates into increased demand for Twist's services to physically create and evaluate the vast number of sequences generated by AI models. Twist is already experiencing triple-digit order growth in this area, indicating a strong positive correlation. Similarly, the 'Genomics '25: Synthetic Biology & Biofoundries' theme is highly favorable, as Twist is a foundational supplier of synthetic DNA, essential for engineering biology and building autonomous lab capabilities. While the theme notes potential bear factors like high upfront capital investment and data curation challenges for AI platforms, these are more industry-wide hurdles that Twist's efficient and scalable platform helps its customers overcome, rather than direct negative impacts on Twist's business model as a supplier.

3 Main Long-Term Bull Details

Dominant Platform for AI-Enabled Drug Discovery: Twist's silicon-based DNA synthesis platform is uniquely positioned to serve the rapidly expanding AI-enabled drug discovery market, which requires high-throughput, precise, and rapid synthesis of millions of DNA sequences and proteins. The company anticipates continued triple-digit percentage order growth in this segment for fiscal 2027, demonstrating strong, durable demand.
Expanding Capabilities and Competitive Moat: Beyond DNA synthesis, Twist has built out protein expression and data characterization capabilities, offering a 'one-stop shop' solution that integrates seamlessly into customer workflows. This comprehensive offering, combined with highly automated manufacturing, proprietary software, and a robust IP position, creates a significant competitive advantage that is difficult to replicate.
Large and Growing Addressable Market: The company's platform enables advances across diverse and growing markets, including cancer diagnostics (e.g., molecular residual disease testing), synthetic biology, and academic research. With biology becoming increasingly digital and data-driven, Twist projects its serviceable addressable market to reach $13 billion by 2030, with further upside from continuous innovation.

3 Main Long-Term Bear Details

High Upfront Capital Investment in AI: The development and integration of advanced AI platforms for drug discovery, which Twist supports, demand substantial upfront capital investment from its customers. If these investments do not yield quick returns or if funding for AI drug discovery startups slows, it could indirectly impact the demand for Twist's services.
Data Quality and Integration Challenges: The effectiveness of AI in drug discovery is heavily reliant on high-quality, standardized, and comprehensive datasets. Challenges in data curation and integration from disparate sources by customers could limit AI's utility and lead to slower drug development, potentially affecting Twist's growth trajectory.
Evolving Regulatory Landscape: The regulatory landscape for AI-designed drugs and AI-driven clinical decisions is still evolving, creating uncertainty for approval pathways. Unfavorable or slow-to-develop regulatory guidance could delay the commercialization of AI-discovered therapeutics, impacting the overall market growth that Twist relies upon.

Competitors And Differentiation: Twist Bioscience operates in a competitive landscape, with 'VC firms invested heavily in alternative DNA synthesis technologies' and specific competitors like GenScript (including their 'TurboCHO' offering) being mentioned. Twist differentiates itself through several key aspects: 1. **Proprietary Silicon Platform**: Their semiconductor-based DNA synthesis platform provides a structural advantage in cost, scale, and speed, enabling high-throughput manufacturing of complex DNA sequences. 2. **Comprehensive Capabilities**: They offer a 'one-stop shop' for customers, translating digital designs into physical biology through high-throughput DNA synthesis, protein expression, and extensive downstream data characterization (binding, developability, etc.). 3. **Automation and Efficiency**: Highly automated manufacturing, proprietary software, and continuous operational improvements have led to significant reductions in manufacturing costs, waste, and turnaround times, while increasing capacity. 4. **Quality and Precision**: They emphasize delivering precision and consistent quality at scale, even for highly challenging constructs like 'complex genes'. 5. **Focus on AI-Enabled Discovery**: Their platform is uniquely suited to support the rapid 'design, build, test, learn' cycles required by AI-driven drug discovery programs.
Recent Performance & What The Market'S Focused On: Twist Bioscience reported its 14th consecutive quarter of sequential growth in fiscal Q3 2026, with record revenue of $118.4 million, a 23% year-over-year increase. Gross margin improved to 52.8%. The company is guiding for total revenue of $456 million to $457 million for fiscal 2026, representing approximately 21% year-over-year growth, and expects Q4 2026 revenue of $123 million to $124 million (25% YoY growth). A key focus for the market is the company's strong momentum in AI-enabled drug discovery, with anticipated triple-digit percentage order growth for fiscal 2026 and 2027. The market is also closely tracking Twist's commitment to achieving adjusted EBITDA breakeven in Q4 fiscal 2026 and sustaining that performance into fiscal 2027.

Revenue Segments And Estimated Mix: DNA Synthesis and Protein Solutions (DSPS) — Mix: ~47.8%; Source: Q3 2026 transcript; Trend: Increased to $56.6 million, 39% YoY growth, 6% sequentially
NGS Applications — Mix: ~52.2%; Source: Q3 2026 transcript; Trend: Grew to $61.8 million, 12% YoY growth, 8% sequentially
Therapeutics (Industry) — Mix: ~34.1% of total revenue; Source: Q3 2026 transcript; Trend: $40.4 million, 49% YoY growth
Diagnostics (Industry) — Mix: ~37.0% of total revenue; Source: Q3 2026 transcript; Trend: $43.8 million, 15% YoY growth, 10% sequentially
Academic and Government (Industry) — Mix: ~13.1% of total revenue; Source: Q3 2026 transcript; Trend: $15.5 million, 32% YoY growth, 21% sequentially
Global Supply Partner (Industry) — Mix: ~10.9% of total revenue; Source: Q3 2026 transcript; Trend: $12.9 million, relatively stable YoY
Industry and Applied (Industry) — Mix: ~4.8% of total revenue; Source: Q3 2026 transcript; Trend: $5.7 million, decreased YoY
Product Brands: Twist Oligo Pools
Gene Fragments
Complex Genes
Express Genes
Twist comprehensive viral panel
NGS Target Enrichment Solutions
TrueAmp Library Prep Kit
PCR-Free WGS Library Prep Kit
cfDNA Library Prep Kit with TrueAmp Polymerase Mix
RNA Library Prep Kit
EM-seq v2 Methylation Detection System
cfDNA Pan-Cancer Reference Standard v2
Respiratory Virus Controls
Variant Libraries

Bull / Bear Details

Twist Bioscience presents a compelling bull case driven by its silicon-based DNA synthesis platform, uniquely positioned to capitalize on surging demand from AI

Thesis

Twist Bioscience presents a compelling bull case driven by its silicon-based DNA synthesis platform, uniquely positioned to capitalize on surging demand from AI-enabled drug discovery. With consistent revenue growth, a clear path to sustained adjusted EBITDA breakeven, and an expanding competitive moat, Twist is transforming biology into a digital, data-driven, and AI-enabled process, despite ongoing capital investments and evolving market dynamics. (Updated 2026-08-30)

Bull case

AI-enabled drug discovery is a robust growth engine, with Twist projecting triple-digit percentage order growth for fiscal 2026 and again for fiscal 2027. This strong, durable demand from existing and new customers, expanding into new modalities like IgG and bispecifics, validates Twist's critical role in accelerating drug development through high-throughput DNA synthesis and protein solutions.
Twist's competitive moat is expanding significantly beyond its core IP, encompassing a complex infrastructure for manufacturing, automation, software, and customer experience. Recent operational improvements, including a 60% reduction in manufacturing costs and a fourfold increase in oligonucleotide capacity, enhance its ability to deliver unparalleled speed, scale, and quality, making its platform exceptionally difficult to replicate.
The company is on a clear path to sustained profitability, expecting to achieve adjusted EBITDA breakeven in Q4 fiscal 2026 and maintain it in fiscal 2027. This financial discipline, combined with a long-term goal of doubling organic revenue by 2031 and strong growth in NGS applications, particularly in tumor-informed molecular residual disease (MRD) tests, underpins a robust long-term growth trajectory.

Bear case

Developing and integrating advanced AI platforms and expanding manufacturing capabilities require substantial upfront capital investment in technology, infrastructure, and specialized talent. While strategic, these investments can delay the realization of significant net benefits and impact near-term profitability and cash flow, as evidenced by planned one-time expenses affecting Q3 adjusted EBITDA.
The effectiveness of AI in drug discovery is highly dependent on the availability of high-quality, standardized, and comprehensive datasets. Challenges in data curation and integration can limit AI's utility for customers. Additionally, sequential fluctuations in therapeutics revenue, even with strong year-over-year growth, suggest potential variability in customer order patterns or a shift towards smaller, lower-ASP gene sequences.
The regulatory landscape for AI-designed drugs and AI-driven clinical decisions remains in flux, creating uncertainty for approval pathways. While Twist is a tools provider, the broader market adoption and commercialization of AI-enabled therapeutics could be impacted by evolving guidance from regulatory bodies like the FDA and EMA, potentially influencing the long-term growth of Twist's AI-driven discovery segment.

Bull / Bear Case

Bear Case: The development and integration of advanced AI platforms and the expansion of manufacturing capabilities require substantial upfront capital investment, which can delay significant net benefits and impact near-term profitability and cash flow, as seen with Q3 adjusted EBITDA. The effectiveness of AI in drug discovery is highly dependent on high-quality, standardized datasets, and challenges in data curation and integration by customers could limit AI's utility and slow drug development. The evolving regulatory landscape for AI-designed drugs creates uncertainty for approval pathways, potentially influencing the long-term growth of Twist's AI-driven discovery segment. Sequential fluctuations in therapeutics revenue, despite strong year-over-year growth, suggest potential variability in customer order patterns or a shift towards smaller, lower-ASP gene sequences. While management dismisses competition, significant VC investment in alternative DNA synthesis technologies could pose future threats.
Bull Case: Twist Bioscience is strongly positioned to capitalize on the booming AI-enabled drug discovery market, projecting triple-digit percentage order growth for fiscal 2026 and again for fiscal 2027. This is driven by existing customers, new acquisitions, and expansion into new modalities like IgG and bispecifics. The company's silicon-based DNA synthesis platform provides a significant competitive moat through unparalleled cost, scale, and speed, reinforced by a complex infrastructure of manufacturing, automation, software, and customer experience. Operational improvements have led to a 60% reduction in manufacturing costs and a fourfold increase in oligonucleotide capacity. Twist is on a clear path to sustained profitability, expecting adjusted EBITDA breakeven in Q4 fiscal 2026 and maintaining it in fiscal 2027, with a long-term goal of over 60% gross margins. The serviceable addressable market is projected to reach $13 billion by 2030, fueled by growth in NGS applications, particularly molecular residual disease (MRD) tests, and nucleic acid therapeutics.
More Compelling & Why: Bull. Given the strong market outperformance post-earnings and management's confident outlook, the bull case is more compelling. While the company currently trades at a premium P/S ratio (e.g., 10x forward sales) compared to industry peers, the strongest argument is the confirmed triple-digit percentage order growth for AI-enabled drug discovery in fiscal 2026 and projected for 2027, coupled with a clear path to adjusted EBITDA breakeven. This indicates robust demand and operational leverage. My view would flip if Twist fails to achieve and sustain adjusted EBITDA breakeven in fiscal 2027, or if AI-enabled drug discovery order growth decelerates significantly below triple digits.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Achievement of adjusted EBITDA breakeven	This is a critical financial milestone, demonstrating the company's path to profitability and operational efficiency. Achieving and sustaining breakeven is essential for long-term investor confidence, valuation, and validates management's disciplined approach to investments and growth.	Adjusted EBITDA for Q4 fiscal 2026. Management expects to achieve breakeven and sustain it in fiscal 2027.	Bullish: Adjusted EBITDA is at or above $0 million for Q4 FY26 and sustained in FY27. Bearish: Adjusted EBITDA remains negative in Q4 FY26 or management walks back the commitment for FY27.	Company earnings calls and press releases for Q4 FY26 financial results (expected November 2026) and subsequent fiscal 2027 guidance.	N/A	S&P Global Market Intelligence: Consensus analyst estimates for adjusted EBITDA.
Gross margin expansion	Expanding gross margins indicate improved operational efficiency, economies of scale from their silicon platform, and potential pricing power. This directly contributes to enhanced profitability and validates the long-term value creation strategy through continuous process improvements and capacity utilization.	Gross margin percentage for Q4 fiscal 2026 and fiscal 2027 guidance. The Q3 gross margin was 52.8%.	Bullish: Gross margin above 52.8% in Q4 FY26 and clear guidance towards the >60% long-term goal. Bearish: Stagnation or decline in gross margin, or management revising down the long-term margin target.	Company earnings calls and press releases for Q4 FY26 financial results (expected November 2026) and subsequent fiscal 2027 guidance.	N/A	S&P Global Market Intelligence: Consensus analyst estimates for gross margin.
DNA Synthesis and Protein Solutions (DSPS) revenue growth	DSPS is a primary revenue segment, and its continued strong growth, particularly from AI-enabled drug discovery and increasing gene shipments, is fundamental to Twist's overall financial performance. It confirms market adoption of their platform and services.	DSPS revenue for Q4 fiscal 2026, with an expectation of sequential growth driven by therapeutics. Also, the number of genes shipped.	Bullish: DSPS sequential growth in Q4 FY26, and continued strong year-over-year growth above 39%. Bearish: DSPS sequential decline or significant slowdown in year-over-year growth.	Company earnings calls and press releases for Q4 FY26 financial results (expected November 2026).	N/A	Bloomberg Terminal/Refinitiv Eikon: Analyst consensus estimates for DSPS revenue.
NGS Applications revenue growth, particularly from Diagnostics/MRD	NGS is the other major revenue segment, and its growth, especially in high-potential areas like molecular residual disease (MRD), diversifies Twist's revenue streams. It capitalizes on expanding global sequencing volumes and reinforces their position as a trusted partner in diagnostics.	NGS applications revenue for Q4 fiscal 2026, with an expectation to return to growth above 20% year-over-year. Commentary on customer adoption and commercial volumes for MRD tests.	Bullish: NGS applications revenue growth above 20% YOY in Q4 FY26 and strong commentary on MRD test adoption. Bearish: NGS applications revenue growth below 20% YOY or negative commentary on MRD market penetration.	Company earnings calls and press releases for Q4 FY26 financial results (expected November 2026).	ClinicalTrials.gov: Registrations for molecular residual disease (MRD) trials using NGS. PubMed/Scopus: Publication trends for 'molecular residual disease' and 'NGS diagnostics'.	IQVIA/Definitive Healthcare: Market share data for NGS diagnostic panels, particularly in oncology/MRD.
Triple-digit percentage order growth for AI-enabled drug discovery	This indicates strong, durable demand for Twist's core DNA synthesis and protein solutions, validating their strategic focus on AI-driven drug discovery. It signals future revenue acceleration and reinforces their competitive advantage in high-throughput biological manufacturing for advanced therapeutic development.	Confirmation of meeting or exceeding triple-digit percentage order growth for AI-enabled drug discovery in fiscal 2026 (vs. FY25) and continued triple-digit percentage order growth for fiscal 2027 (vs. FY26).	Bullish: Meeting or exceeding triple-digit percentage order growth in FY26 and strong indications for FY27. Bearish: Failure to meet the triple-digit growth target or a significant slowdown in the funnel of opportunities.	Company earnings calls and press releases for Q4 FY26 results (expected November 2026) and subsequent fiscal 2027 updates.	Google Trends: 'Twist Bioscience AI drug discovery' search volume. Reddit: r/drugdiscovery, r/bioinformatics for discussions on AI applications and demand for synthetic biology.	Thinknum: 'Twist Bioscience' job postings for AI/ML roles (growth/decline). Apptopia/SimilarWeb: Web traffic to twistbioscience.com, specifically product pages related to AI drug discovery.

Key Reported Metrics, Reratings Triggers & Results3 rows

DSPS revenue is directly tied to the booming AI-enabled drug discovery market, which is a primary growth driver. Its performance reflects the uptake of Twist's

Upcoming print · 2026-11-13

Key reported metrics
Metric	Last period	Why it matters
DNA Synthesis and Protein Solutions (DSPS) revenue	39%	DSPS revenue is directly tied to the booming AI-enabled drug discovery market, which is a primary growth driver. Its performance reflects the uptake of Twist's core synthesis and protein solutions by therapeutic customers.
AI-enabled drug discovery order growth	triple-digit percentage growth	This metric is a critical indicator of Twist's success in a high-growth, strategic market. Continued triple-digit order growth demonstrates the platform's value in accelerating drug discovery and provides strong visibility for future revenue expansion.
Total Revenue	23%	Total revenue growth signals the company's overall market penetration and execution. For the next quarter, investors will watch if Twist can sustain its strong momentum and meet or exceed its raised guidance, validating its business model.

Key Questions

Will the strong order growth in AI-enabled drug discovery translate into the expected sequential and year-over-year revenue acceleration for the DNA Synthesis a

Will the strong order growth in AI-enabled drug discovery translate into the expected sequential and year-over-year revenue acceleration for the DNA Synthesis and Protein Solutions (DSPS) segment in Q4 fiscal 2026 and beyond, validating the durability of this growth engine?

Question 2: Can Twist Bioscience successfully achieve its stated goal of adjusted EBITDA breakeven in Q4 fiscal 2026 and provide a credible outlook for sustaining this profitability into fiscal 2027, given ongoing investments and potential OpEx fluctuations?
Question 3: Will the NGS Applications segment re-accelerate its year-over-year revenue growth to above 20% in Q4 fiscal 2026, particularly driven by increased adoption and commercialization of diagnostic customers and molecular residual disease (MRD) tests, further solidifying Twist's competitive position in this market?

Earnings Transcript SummaryTable

2026-08-03 · 2026Q3 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. AI-enabled drug discovery as a durable growth engine: Management consistently highlighted AI-enabled drug discovery as a significant and maturing opportunity, expecting triple-digit percentage order growth in fiscal 2026 and 2027, driven by existing customers, new acquisitions, and expansion into new modalities. 2. Operational excellence and platform strengthening: Management emphasized continuous improvement in manufacturing discipline, commercial execution, digital capabilities, and the overall competitive moat of their silicon-based DNA synthesis platform, aiming to deliver exceptional quality, increase productivity, expand capacity, and reduce turnaround time. 3. Achieving and sustaining adjusted EBITDA breakeven: The company reiterated its commitment to achieving adjusted EBITDA breakeven in Q4 fiscal 2026 and maintaining that performance into fiscal 2027, focusing on top-line growth while managing operating expenses and making strategic investments.	Call Takeaway & ToneThe overall takeaway of the call was highly positive and confident. Management emphasized strong, consistent revenue growth (14 consecutive quarters) driven significantly by the maturing AI-enabled drug discovery market, which they see as a durable, long-term growth engine. They highlighted their competitive advantage stemming from their silicon-based DNA synthesis platform, operational excellence, and expanding capabilities in data characterization. The company is firmly on track to achieve adjusted EBITDA breakeven in Q4 fiscal 2026 and aims to sustain profitable growth. The tone was optimistic, with management expressing strong conviction in their strategy, execution, and the substantial market opportunities ahead, particularly in areas like molecular residual disease and nucleic acid therapeutics.	Prior Quarter'S Y/Y Growth By SegmentFor Q2 2026, total revenue grew 19% year-over-year. DNA Synthesis and Protein Solutions (DSPS) revenue grew 28% year-over-year. NGS Applications revenue grew 12% year-over-year. Therapeutics industry revenue grew 55% year-over-year. Diagnostics industry revenue grew 14% year-over-year. EMEA revenue grew 22% year-over-year. APAC revenue grew 30% year-over-year. Prior quarter's year-over-year growth for Americas, Industry and applied, Academic and government, and Global supply partner revenue segments was not explicitly found in the provided search results.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Therapeutics revenue sequential decline and durability of AI growth: Analysts questioned why therapeutics revenue was incrementally down sequentially despite good volumes and sought clarity on the durability of the projected triple-digit AI growth for FY '27. Management responded by emphasizing overall strong growth, explaining that AI-enabled discovery is driven by existing customers iterating models, new customer acquisition, and expansion into new modalities (e.g., VHH to IgG, bispecifics), which provides strong confidence for continued triple-digit growth. 2. Discrepancy between gene shipped growth and protein segment growth, AI order-to-revenue conversion, and adjusted EBITDA bridge: Analysts inquired about the difference between the 56% gene shipped growth and 39% protein segment growth, how AI orders convert to revenue, and details on achieving and sustaining adjusted EBITDA breakeven. Management clarified that while gene volume is growing massively, the shift to smaller antibody-type sequences impacts the DSPS growth rate, and AI project timelines are short (weeks), leading to orders and revenue converging. For EBITDA, they pointed to sequential OpEx improvements from Q3 one-time expenses (employee transitions, digital capabilities investment) as the path to Q4 breakeven and sustained progress. 3. Impact of competition/discounting and drivers for raised Q4 guidance: Analysts asked about competitive actions and discounting affecting the therapeutics/AI business and the expected drivers for the raised Q4 guidance. Management expressed no concerns about competition, highlighting Twist's unique scale and speed for delivering thousands to millions of sequences. They reiterated that the raised Q4 guidance reflects continued sequential growth in both DSPS (driven by therapeutics/AI) and NGS (diagnostics) due to a strong pipeline, new customers, and repeat business.	Revenue SegmentsTotal revenue grew 23% year-over-year. DNA Synthesis and Protein Solutions (DSPS) revenue increased 39% year-over-year. NGS applications revenue grew 12% year-over-year. Americas revenue increased 30% year-over-year. EMEA revenue rose 9% year-over-year. APAC revenue increased 26% year-over-year. Therapeutic revenue grew 49%. Diagnostics revenue increased 15%. Industry and applied revenue decreased by approximately 6.6% year-over-year (from $6.1 million to $5.7 million). Academic and government revenue increased 32% year-over-year. Global supply partner revenue decreased by approximately 0.77% year-over-year (from $13 million to $12.9 million).

Transcript TidbitsTable

2026-08-03

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketTwist is expanding its eligible market through the maturation of AI-enabled drug discovery into a durable growth engine, supporting global public health with rapid viral panel identification (e.g., Bundibugyo Ebola virus, hantavirus), growing NGS applications driven by diagnostic customers (especially tumor-informed molecular residual disease tests), and expanding its DNA synthesis capabilities with complex genes. The serviceable addressable market is projected to be $13 billion by 2030, with future opportunities in proprietary enzymes and nucleic acid therapeutics.	About CompetitionTwist believes its competitive moat is expanding beyond its silicon chip IP to include manufacturing, automation, software, commercial execution, and customer experience, making it exceptionally difficult to replicate. The company is not concerned about competition from alternative DNA synthesis technologies or existing players like GenScript TurboCHO, asserting that its platform's ability to deliver high volumes of complex DNA sequences, protein expression, and data characterization at speed makes them "unbeatable" for large-scale projects and positions them as a "disruptor" in the protein and data space.	About The Broader IndustryThe broader industry is experiencing a significant shift towards computational, digital, and AI-enabled biology, particularly in drug discovery, where AI is becoming the primary screen for antibody discovery. This trend is driving demand for precision, speed, and scale. Global sequencing volumes are growing, and the molecular residual disease (MRD) market is expanding with a favorable reimbursement environment.	Where Things Are HeadedTwist is confident in its growth trajectory, expecting to meet or exceed triple-digit percentage order growth for AI-enabled drug discovery in fiscal 2026 and again in fiscal 2027. They are raising fiscal 2026 revenue guidance to $456-$457 million (21% YOY growth) and project Q4 FY26 revenue of $123-$124 million (25% YOY growth), with sequential growth in both DSPS (driven by therapeutics) and NGS (above 20% YOY). The company expects to achieve adjusted EBITDA breakeven in Q4 FY26 and sustain it in FY27, with a long-term goal of over 60% gross margins and more than doubling revenue from organic growth by 2031. Growth will be driven by existing customers iterating models, new customer acquisition, expansion into new modalities (e.g., IgG from VHH), and increased demand for data characterization.	Updates On ThemeAI	Broader Themes EmergingRapid genomic response for global public health and emerging infectious diseases, and the long-term potential of nucleic acid therapeutics for personalized diagnostics and treatment.	Bullish-Leaning Quotes (Short)"14th quarter of consistent growth with record revenue of $118.4 million, growth of 23% year-over-year." "AI-enabled discovery as an important emerging opportunity. Today, we are seeing that opportunity mature into a durable growth engine." "We believe that we have the potential to again post triple-digit percentage order growth for AI-enabled drug discovery in fiscal 2027." "Our competitive moat expands well beyond our robust IP position around the chip into a complex infrastructure." "We believe we have a strong growth trajectory to more than double revenue from organic growth in 2031." "We expect to achieve adjusted EBITDA breakeven for the fourth quarter of fiscal 2026, and we expect to maintain this commitment for fiscal '27."	HiringThe company incurred approximately $2 million in employee transition costs during the quarter, which are expected to result in a more than $5 million reduction in operating expenses in the fourth quarter, indicating some workforce restructuring.

Upcoming EventsTable

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
TWST_1d572939	November	2026-11-01	2026-11-30	Release full year fiscal 2027 guidance.	This will provide investors with a clearer financial outlook for the upcoming fiscal year, influencing sentiment and valuation.	Ticker	2026-08-03	earnings_transcript